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Experts suggest methods to revive growth of Indian Auto sector

New Delhi, Feb.8 ANI | 1 year ago

National Manufacturing Competitiveness Council (NMCC) Member Secretary Ajay Shankar said that adoption of innovative green technologies, cross-disciplinary vocational training and aggressive R and D could change the face of Indian Auto Industry in the next decade.

"A strong collaboration between Industry, Government and Academia is the key to provide the much needed impetus to the auto sector, which is experiencing a sluggish phase", he said while addressing the CII International Conference on World Class Technologies for Sustainable Growth of Automotive Industry organised by Confederation of Indian Industry (CII), here today.

Calling the Indian Auto sector as the most vibrant industry, he noted that the automobile industry is one of India's major sectors; accounting for 22 percent of the country's manufacturing GDP.

"The Indian auto industry, comprising passenger cars, two-wheelers, three-wheelers and commercial vehicles, is the seventh-largest in the world with an annual production of 17.5 million vehicles, of which 2.3 million are exported. Indian Auto market has the potential to dominate the Global auto industry, provided, a conducive environment is created for Potential innovators to come up with new pilot projects," he said.

Emphasizing the need for developing sustainable Auto technologies, Shankar further added that the coming century will be the century of Smart Cities, where emissions will be zero and Carbon foot print will be nominal.

"So the Indian Auto Sector needs to aggressively focus on development of world-class smart vehicles. I call upon CII and its members to actively campaign and communicate the need, successes, ways and benefits of Sustainable Growth of Automotive Industry,' he added.

Focusing on the need of cooperation, Sunil Kant Munjal, Past President, CII and Joint Managing Director, Hero MotoCorp Ltd. said: "Technology never works in isolation. So it is high time Indian Auto Sector connected efficiently with Korean, Japanese, American markets to make a significant mark on global map. There is a dire need of strong competitive corporate cooperation for development of innovative business models to attain holistic growth of the sector."

"Integrated multi-model transport system will be the future of the Auto Sector, So we need to establish world-class training institutes, with a cross disciplinary approach. Focus of these institutes should not only be development of relevant ideas but on development of pilots and patents," he added.

He also called upon the women entrepreneurs to come forward and actively participate in the development process of the sector.

Suggesting a five-point agenda for revitalizing growth of the Indian Auto Sector, Dr Wilfried Aulbur, Managing Partner, Roland Berger Strategy Consultants, the Knowledge Partners for the Conference, said: "By the year 2050, 75 per cent of the world population will be urban, which directly inclines to the need of advanced mass transit system."

"In such a scenario, the Auto Industry around the world needs to follow a simple five-point agenda to revive its growth: Focus on R and D, Development of International tie-ups between big as well as budding auto houses across the globe, Evolution of light weight vehicles, Focus on zero-emission technologies and Sustainable production supply chain," he added.

Citing examples of Google and Apple, he said: "The auto industry needs to adopt advanced business models and develop such vehicles that are pocket as well as environment friendly."

A report- Automotive Landscape 2025, prepared by CII and Roland Berger was also released on the occasion.

Expressing concern over the low expenditure on R and D in Indian Auto Sector, Harish Lakshman, President, ACMA and Managing Director, Rane TRW Steering Systems, said that only 1 per cent of the sales revenue is spent on R and D in India, which is over 5 per cent in countries like Germany and Korea.

"This is quite evident to prove the fact that Research and Development has been ignored by the Indian Auto Sector. In such scenario, the sector needs to focus upon this area tremendously,' he said.

Further, talking about the challenges being faced by the Indian Auto Sector, he said, "On one hand, the input cost is increasing and on the other hand demand for low cost vehicles is on a rise. In such a situation, adoption of simple yet responsible corporate behaviour and upgradation of technologies is required. We must also focus aggressively on adoption of green technologies at each and every step of production-supply chain, so as to develop new improved eco-system".

Citing examples of Google and Apple, Lakshman said that that the future of mobility will be marked by growth of light utility vehicles and mass transit.

"So, the auto industry needs to adopt advanced business models and develop such vehicles that are pocket as well as environment friendly," he added.

Jayant Davar, Chairman CII NR and MD, Sandhar Technologies Ltd, said: "India is poised to be one of the fastest growing automotive markets worldwide over the next decade and to harness this opportunity, effective management of the short term challenges, conducive environment for R and D, implementation of sustainable strategies and strong Industry aEuro" Academia - Government partnership are the keys. This Conference proved to be an apt platform to chalk a roadmap for sustainable growth of auto industry."

He also laid emphasis on development of future generation vehicles that are not only based on zero-emissions concept but also focus on positive emissions to safeguard the environment.

Experts from world's leading Vehicle and Component Manufacturers like Hero MotoCorp Ltd, FIAT Chrysler India, Mercedes-Benz, Maruti Suzuki India Limited, Volkswagen India Pvt Ltd, Mahindra and Mahindra Ltd, Siemens Industry Software (I) Pvt. Ltd and Bosch, shared their experiences on different facets of recent technological advancements in the automobile industry with a view to make Indian Industry stronger, cost effective and globally competitive during the conference.